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These charges are to be used for the financing of storm water systems including the conveyance system, holding areas, ponds, and related facilities. Storm water projects include the cost of construction, reconstruction, repair, enlargement, improvement or other obtainment and the maintenance, operation, and use of such facilities. The charges made for service rendered shall be, as nearly as possible, proportionate to the cost of providing the service. An important issue to decide when a city is considering user charges is the notion of service and to whom the service is rendered. The concept of a charge for service rendered is unclear with reference to storm sewer service. Of particular interest is: (1) what is the service; and, (2) to whom is the service rendered? To answer these two questions one should look at the purpose of proper storm water management and look at the legislative intent. Proper storm water management is undertaken for two reasons: 1. To provide a conveyance system for the increased volume and rate of surface runoff resulting from activities on the land, whether they are urban or intensive agricultural uses. 2. To insure that the surface runoff does not damage riverain or lakeshore properties, or the ecology of a lake, thereby lowering riverain and lakeshore property values. The definition of "service rendered" helps in delineating who will receive a storm water sewer service. First, a service is generally provided to the properties generating runoff because they will ultimately rely on a storm water conveyance system. The degree to which a property relies on or uses the system is dependent on how much runoff a property generates beyond the natural runoff level. A user charge rate structure then should differentiate between types of land uses, density of use and parcel size, all significant in determining runoff. The rate structure should also consider instances where no runoff is generated because of land characteristics, or management practices. In addition, a service is provided to properties in areas susceptible to increases in runoff, especially low -lying areas, riverain and lake shore properties. The degree of protection against the effects of flooding, erosion and water quality degradation is commensurate with the proximity to the creek or its floodplain, or to the lake or wetland. Some modifying factors would include topography, views and access to the lake. These types of areas all to often serve as a reminder of the effect of poor storm water management when they flood. The "problem ", often seen as the flooded property, is really the result of poor storm water management up slope. The real problem is how the up slope (or upstream) properties deal with their storm water Feasibility Study A- LINOL0602.00 City of Lino Lakes, Minnesota A -1